Growing Story: US Economy Almost Collapsed, Sep 2008 - Fantasy Baseball Cafe 2015 Fantasy Baseball Cafe
100% Deposit Bonus for Cafe Members!

Return to General Talk

Growing Story: US Economy Almost Collapsed, Sep 2008

Moderator: Baseball Moderators

Growing Story: US Economy Almost Collapsed, Sep 2008

Postby StlSluggers » Wed Feb 11, 2009 7:22 pm

This is rather sobering information coming out of the House:

Rep. Paul Kanjorski wrote:I was there when the secretary and the chairman of the Federal Reserve came those days and talked to members of Congress about what was going on... Here's the facts. We don't even talk about these things.

On Thursday, at about 11 o'clock in the morning, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States to a tune of $550 billion being drawn out in a matter of an hour or two.

The Treasury opened up its window to help. They pumped $105 billion into the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks.

They decided to close the operation, close down the money accounts, and announce a guarantee of $250,000 per account so there wouldn't be further panic and there. And that's what actually happened.

If they had not done that their estimation was that by two o'clock that afternoon, $5.5 trillion would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.

Now we talked at that time about what would have happened if that happened. It would have been the end of our economic system and our political system as we know it.

This is a link to the video* of the Representative making these statements on CSPAN.

Pretty sobering stuff... :-o

*I'm assuming that link works still. YouTube is blocked at my work.
StlSluggers
Hall of Fame Hero
Hall of Fame Hero

User avatar
CafeholicCafe WriterMock(ing) DrafterWeb Supporter
Posts: 14716
Joined: 24 May 2004
Home Cafe: Baseball
Location: Parking in the gov't bldg @ 7th and Pine. It's only $3.00 on game day!

Re: Growing Story: US Economy Almost Collapsed, Sep 2008

Postby Art Vandelay » Thu Feb 12, 2009 12:36 am

Rep. Paul Kanjorski wrote:If they had not done that their estimation was that by two o'clock that afternoon, $5.5 trillion would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.

I'm certainly far from any kind of expert on the economy, but I simply don't buy this. It smacks of hyperbole. Not that total collapse of the world economy would have been out of the question, I just don't buy that it would have happened in a single day, or that the US economy would have entirely collapsed in a couple of hours.
Image
Art Vandelay
Hall of Fame Hero
Hall of Fame Hero

CafeholicFantasy ExpertPick 3 Weekly WinnerLucky Ladders Weekly Winner
Posts: 5265
Joined: 12 Mar 2005
Home Cafe: Baseball

Re: Growing Story: US Economy Almost Collapsed, Sep 2008

Postby Curtis Pride » Thu Feb 12, 2009 12:51 am

Anyone who is stupid enough to take their money out of their savings accounts because they are afraid of the bank going out of business deserves to have their money taken and be forcibly sterilized.

The government has been providing FDIC insurance on all banks for decades. People stupid enough to rush to the bank to take their money out, certainly weren't smart enough to amass the wealth to have over the $150k FDIC insurance at the time.
Curtis Pride
Major League Manager
Major League Manager

User avatar

Posts: 1363
(Past Year: 5)
Joined: 19 May 2007
Home Cafe: Baseball

Re: Growing Story: US Economy Almost Collapsed, Sep 2008

Postby stevethumb » Thu Feb 12, 2009 12:54 am

Art Vandelay wrote:
Rep. Paul Kanjorski wrote:If they had not done that their estimation was that by two o'clock that afternoon, $5.5 trillion would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.

I'm certainly far from any kind of expert on the economy, but I simply don't buy this. It smacks of hyperbole. Not that total collapse of the world economy would have been out of the question, I just don't buy that it would have happened in a single day, or that the US economy would have entirely collapsed in a couple of hours.


i agree...there is no way $5.5 trillion was going to be "cashed out"..that's $1.8 million each for 3 million people (i think)
Last edited by stevethumb on Thu Feb 12, 2009 1:04 am, edited 1 time in total.
Image
stevethumb
General Manager
General Manager

User avatar
CafeholicEagle Eye
Posts: 4041
Joined: 2 Dec 2004
Home Cafe: Baseball
Location: cloud 9

Re: Growing Story: US Economy Almost Collapsed, Sep 2008

Postby Dusty Baker » Thu Feb 12, 2009 1:02 am

He sorta has the Ted Stevens "SERIES OF TUBES" things going on, maybe a bit of exaggeration, but this is still pretty much terrifying.
Image
Dusty Baker
Softball Supervisor
Softball Supervisor

User avatar

Posts: 40
Joined: 17 Mar 2008
Home Cafe: Baseball

Re: Growing Story: US Economy Almost Collapsed, Sep 2008

Postby Dusty Baker » Thu Feb 12, 2009 1:05 am

Also, probably not the best pep talk to give the American people during these trying times.
Image
Dusty Baker
Softball Supervisor
Softball Supervisor

User avatar

Posts: 40
Joined: 17 Mar 2008
Home Cafe: Baseball

Re: Growing Story: US Economy Almost Collapsed, Sep 2008

Postby JTWood » Thu Feb 12, 2009 1:24 am

stevethumb wrote:
Art Vandelay wrote:
Rep. Paul Kanjorski wrote:If they had not done that their estimation was that by two o'clock that afternoon, $5.5 trillion would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.

I'm certainly far from any kind of expert on the economy, but I simply don't buy this. It smacks of hyperbole. Not that total collapse of the world economy would have been out of the question, I just don't buy that it would have happened in a single day, or that the US economy would have entirely collapsed in a couple of hours.


i agree...there is no way $5.5 trillion was going to be "cashed out"..that's $1.8 million each for 3 million people (i think)

These were institutional withdrawals, not individual.
Image
JTWood
Hall of Fame Hero
Hall of Fame Hero

User avatar
CafeholicCafe WriterEagle EyeWeb Supporter
Posts: 11508
Joined: 22 Jun 2004
Home Cafe: Baseball
Location: Unincorporated Heaven

Re: Growing Story: US Economy Almost Collapsed, Sep 2008

Postby JTWood » Thu Feb 12, 2009 1:30 am

I have tried reading more on this, and from what I've found, some of this Rep's facts are a bit off (dates, mostly). The $550B number is legit, though. No list of who made the withdrawals have been released (that I've found), but there has been rampant speculation as to who made them. Regardless, it is known the withdrawals were made by very large institutions.
Image
JTWood
Hall of Fame Hero
Hall of Fame Hero

User avatar
CafeholicCafe WriterEagle EyeWeb Supporter
Posts: 11508
Joined: 22 Jun 2004
Home Cafe: Baseball
Location: Unincorporated Heaven

Re: Growing Story: US Economy Almost Collapsed, Sep 2008

Postby Neato Torpedo » Thu Feb 12, 2009 1:38 am

Dusty Baker wrote:Also, probably not the best pep talk to give the American people during these trying times.

Actually, it could be taken as "the government knows what it's doing, it's not running completely blind so despite the party-line bickering there are good things coming out of Washington".
Last edited by Neato Torpedo on Thu Feb 12, 2009 1:44 am, edited 1 time in total.
Image

Rocinante2: you know
Rocinante2: its easy to dismiss the orioles as a bad team
ofanrex: go on
Rocinante2: i'm done
Rocinante2: lmao

Play Brushback Baseball! (we need more people)
Neato Torpedo
Hall of Fame Hero
Hall of Fame Hero

User avatar
EditorCafeholicFantasy ExpertCafe WriterCafe RankerWeb Supporter
Posts: 8618
Joined: 4 Mar 2007
Home Cafe: Baseball
Location: we don't burn gasoline, we burn our dreams

Re: Growing Story: US Economy Almost Collapsed, Sep 2008

Postby bleach168 » Thu Feb 12, 2009 1:40 am

Probably embellished a bit, but we were a lot closer to collapse than most people realize. The fall of Lehman bros caused unrepairable damage throughout the financial sector. Had more major financial institutions been allowed to fail, we would be deep in a depression right now.
"And so he spoke, and so he spoke, that lord of Castamere. But now the rains weep o'er his hall, with no one there to hear." - The Rains of Castamere
bleach168
Hall of Fame Hero
Hall of Fame Hero

User avatar
CafeholicFantasy Expert
Posts: 5058
(Past Year: 16)
Joined: 22 Apr 2003
Home Cafe: Baseball

Next

Return to General Talk

Who is online

Users browsing this forum: No registered users and 5 guests

cron
Forums Articles & Tips Sleepers Rankings Leagues


Get Ready...
The 2015 MLB season starts in 4:43 hours
(and 97 days)

  • Fantasy Baseball
  • Article Submissions
  • Privacy Statement
  • Site Survey 
  • Contact